The Dutch Finance Secretary published a new transfer pricing (TP) decree, generally in alignment with OECD’s 2017 guidelines, with some caveats.
- The 2017 OECD changes were clarifying in nature, thus the guidelines apply to prior years
- Aligned with OECD concept of (non) recognition of controlled transactions
- The OECD Guidelines refer to the development, enhancement, maintenance, protection and exploitation (DEMPE) functions, although the development and enhancement functions will receive a higher rating
- New guidance on a purchase of shares, followed by a restructuring
- Public database results for economic analyses will be subject to further review
- Simplified approach of cost + 5% is adopted for intra-group services
As some of the above concepts will be reviewed, and adopted, by other countries the new decree is a must read for TP professionals.
EY’s referenced Global Tax Alert provides additional details.